"The Company continues to invest in several late-stage development
projects and in facilities where commercial products will be made,"
said Mr. Graeme McRae, President & CEO of Bioniche Life Sciences Inc.
"We are nearing commercialization of some important products in the
next 12 to 18 months and this requires an intensive resource
allocation. Once these products reach the marketplace, we expect the
new revenues will neutralize the corporate burn rate."

Further to the Company's news release of Monday, November 5, 2012, the
Company continues to discuss with its licensing partner, Endo
Pharmaceuticals, potential next steps for the Urocidin™ clinical program following the discontinuation of the current Phase III
clinical trial in non-muscle-invasive bladder cancer. Urocidin™ remains a valuable asset and the Company is committed to ensuring that
this valuable product becomes commercialized.

Fiscal 2013 First Quarter Financial Results Highlights

Revenues from the sale of Animal Health products increased by $0.5
million in the quarter, offset by a decrease in collaborative research
revenue of $0.6 million. Animal Health revenues out of Canada, which
includes sales into South America, declined by 17% compared to the same
quarter last year due to the timing of sales orders. Sales in the
United States increased 30% over the same quarter last year primarily
from the introduction of new products. Sales in Australia and Europe
also saw modest increases. Consolidated revenues for the quarter were
$6.7 million, as compared to $6.8 million in the same period in Fiscal
2012.

The cost of sales related to product sales in the Animal Health business
unit has decreased by 2% in Q1, Fiscal 2013 from the same quarter in
Fiscal 2012. This decrease is directly related to increased sales from
new products. Gross margins were 54.2% in Q1, Fiscal 2013, compared to
49.8% in the first quarter of last year.

The Company generated Earnings (Loss) Before Interest, Taxes,
Depreciation and Amortization (EBITDA) - before research and
development expenses - of ($107,000) for Q1, Fiscal 2013, as compared
to ($242,000) for the same period in Fiscal 2012.

Cash, cash equivalents and short-term investments amounted to $14.4
million at September 30, 2012, as compared to $9.6 million in the same
period last year and $20.0 million at June 30, 2012. A further $14
million was available to the Company at September 30, 2012 through
trade and other receivables and inventories. In the same period last
year, $14.6 million was available through these sources.

At September 30, 2012, the Company's net working capital totalled $21.2M
as compared to working capital of $27.5M at June 30, 2012, reflecting
the decrease in cash primarily used to invest in late-stage development
and commercialization activities.

The Company's cash flow used in operations for the quarter ended
September 30, 2012 was $5.0 million, as compared to cash used in
operations of $3.9 million in the same period in Fiscal 2012. As a
result, the average monthly burn rate for Q1, Fiscal 2013 was $1.8
million, vs. $1.2 million for the same quarter in Fiscal 2012.

"The Company remains committed to reducing the average monthly burn rate
progressively throughout the year as it completes the development and
commercialization of several new products," said Mr. Brian Ford, Chief
Financial Officer of Bioniche Life Sciences Inc. "The Company's goal is
to neutralize its burn rate and develop sustainable cash flows in
Fiscal 2014."

The value of the Company's Property, Plant and Equipment has increased
to $40.2 million at September 30, 2012, compared to $40.1 million at
June 30, 2011. This increase reflects an ongoing investment in the
Animal Health and Food Safety Vaccine Manufacturing Centre at the
Company's corporate headquarters in Belleville, Ontario. This facility
is undergoing validation to meet global GMP production standards.

Administrative expenses were $2.3 million in Q1, Fiscal 2013, as
compared to $2.5 million in the same quarter last year. Marketing,
selling and distribution expenses were $1.8 million in Q1, Fiscal 2013,
as compared to $1.8 million in the same quarter last year. The
additional expenditure in this category is related to increased
staffing to support the launch and distribution of several new Animal
Health products.

Research and development (R&D) expenditures for Q1, Fiscal 2013 were
$4.3 million, as compared to $4.8 million in the same quarter last
year. R&D resources are focused on the advancement of certain
development programs in Animal Health and Food Safety. Additionally,
there is continued investment in the staffing and infrastructure
associated with the GMP production of the Company's UrocidinTMbladder cancer treatment. Further, until such time as the Company's
Vaccine Manufacturing Centre in Belleville is making commercial
product, the carrying costs associated with this facility are also
accounted for under R&D.

The Company incurred financial expenses of $1.5 million (including
non-cash financial expenses of $737,000) during Q1, Fiscal 2013 as a
result of its US$20 million debt financing with Capital Royalty
Partners. This compares to financial expenses of $0.2 million in the
same quarter of Fiscal 2012.

The basic and fully-diluted net loss per share for Q1, Fiscal 2013 is
($0.06), as compared to a net loss per share of ($0.04) in the same
period last year. Total Common Shares outstanding at September 30, 2012
were 103,738,712, as compared to 102,375,477 at September 30, 2011.

The Company has incurred significant losses and has an accumulated
deficit of $125.5 million as at September 30, 2012, including a current
loss of $6.7 million for the first quarter of Fiscal 2013. The
Company's committed cash obligations and expected level of expenditures
for the next twelve months exceed its committed resources of funds and
funds available as at September 30, 2012.

The Company expects to finance its future expenditures by obtaining
additional financing and the exploration of new partnering agreements
on technologies under development. If the Company is unable to
accomplish either of these initiatives, which are outside of
management's control, the Company will be required to curtail its
development activities and operations.

More information on the Company's year-end financial results is provided
in the Company's Q1, Fiscal 2013 Management's Discussion and Analysis
dated November 7, 2012.

Annual and Special Meeting of Shareholders

The Company held its Annual and Special Meeting of Shareholders in
Belleville, Ontario today. At the meeting, shareholders voted in favour
of electing the following individuals as members of the Board of
Directors:

The shareholders also voted in favour of the appointment Ernst & Young,
LLP, Chartered Accountants, as auditors of the Corporation.

Further, the shareholders voted in favour of an increase in the maximum
number of Common Shares available to be issued under the Group
Registered Retirement Savings and Employee Savings Plan ("Savings
Plans") to 10,000,000.

CIO, CTO & Developer Resources

The shareholders voted in favour of an increase in the maximum number of
Common Shares available to be issued to pay outside directors to
1,400,000.

The shareholders voted in favour of a new Shareholders' Rights Plan. The
Plan was originally approved in 2006 by the Toronto Stock Exchange and
the shareholders. As the Plan had expired, a new Plan had to be
approved.

Finally, the shareholders voted in favour of re-approval of the Amended
and Restated Stock Option Plan. This Plan was approved by the
shareholders in 2009 and requires re-approval by the shareholders every
three years. The Stock Option Plan is a means by which the Company can
compensate eligible persons for their contributions to the performance
of the Company.

Other Meeting Highlights

During the meeting, additional information was presented to
shareholders, including the following highlights:

The Animal Health business unit has an objective of reaching $60 million
in product sales revenues in Fiscal 2016.

The Company's Sin Susto™ canine calming product is expected to be launched in North America in
January, 2013.

The Company is talking with the University of Ottawa about potential
human applications for Sin Susto™.

The Company's Animal Health and Food Safety Vaccine Manufacturing Centre
in Belleville, Ontario is expected to be fully validated to Good
Manufacturing Practice (GMP) standards by the spring of 2013.

The Company is seeking a distribution partner in Japan for Econiche®.

The Company's second canine oncology product in development - Oncocidin™ - is expected to be launched in Q1, Fiscal 2014.

The Company has filed new patents around Mycobacterial Cell Wall-DNA
Complex (MCC) in October, 2011.

A possible future indication for MCC is in human palliation following
chemotherapy.

The Company's R. equi vaccine for horses is undergoing proof of concept studies at the Gluck
Equine Research Centre in Kentucky, where the protocol involves
vaccinating mares to protect foals.

About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven
Canadian biopharmaceutical company focused on the discovery,
development, manufacturing, and marketing of proprietary and innovative
products for human and animal health markets worldwide. The
fully-integrated company employs more than 200 skilled personnel and
has three operating divisions: Human Health, Animal Health, and Food
Safety. The Company's primary goal is to develop and commercialize
products that advance human or animal health and increase shareholder
value.

Except for historical information, this news release may contain
forward-looking statements that reflect the Company's current
expectation regarding future events. These forward-looking statements
involve risk and uncertainties, which may cause, but are not limited
to, changing market conditions, the successful and timely completion of
clinical studies, the establishment of corporate alliances, the impact
of competitive products and pricing, new product development,
uncertainties related to the regulatory approval process, and other
risks detailed from time to time in the Company's ongoing quarterly and
annual reporting.

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